Betfair has agreed to make almost £100,000 of ex-gratia payments to irate
punters who saw their bets voided after a technical glitch on a race at
Leopardstown.

In an attempt to quell a row and avert potential legal action, the betting exchange operator is honouring the wagers of some gamblers who bet on the Christmas Hurdle, won by Voler La Vedette on December 28.

In an embarrassing incident for a company that prides itself on its technology, Betfair's systems permitted one customer using an automated trading system – known as a 'bot' – to lay bets in-running at 28-1 on a horse that started 13-8 second favourite. Worse, Betfair was still taking bets on the horse after it had crossed the line.

The layer was overrun with bets, leaving a potential payout of £23m. Had enough punters got on, Betfair's systems were actually pricing up a potential liability of £600m.

On Wednesday, the company – still reeling from its disastrous £13-a-share float – said after discussions with its regulator, the Gibraltar Gaming Commission (GGC), it had decided that "in the interests of fairness, certain categories of voided bets will be compensated".